THE EFFECT OF CREATIVE ACCOUNTING PRACTICES ON REPORTED PROFIT AND LIQUIDITY OF QUOTED COMMERCIAL BANKS IN NIGERIA

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dc.contributor.authorAruwa, Suleiman A.S.
dc.contributor.authorTanimu, Shuaibu Atabs
dc.date.accessioned2023-12-10T17:39:14Z
dc.date.available2023-12-10T17:39:14Z
dc.date.issued2011-07-12
dc.description.abstractThe creative financial reporting practices of banks were studied, particularly the adversarial reporting practices associated with Statement of Accounting Standard (SAS 10). The paper examines the effect of creative accounting practices on reported profit and liquidity of quoted banks in Nigeria. This study used ordinary least square method of regression, to examine the relationship between Provisions for Bad and Doubtful Loans (PBDL), provision for depreciation (PFD) and the reported profit and liquidity of Quoted Commercial Banks in Nigeria. The study used secondary sources of data. The data were collected from the Nigerian Stock Exchange (NSE). A sample of three banks was selected out of the sample size of twenty banks quoted on the NSE as at December, 2009, using purposeful sample technique. No significant relationship in provision for bad and doubtful loans, reported profit and liquidity position except for one of the sample, which shows a significant relationship between PBDL and liquidity. But there is a significant difference in the strength of the relationship for provision for depreciation and profitability. Although, there is negative relationship between PFD and liquidity, the strength of the relationship has varied with the result on PBDL. The study recommends uniform rates for depreciation to be specified by Central Bank of Nigeria while the timing by which debts are being serviced by customers should always be reviewed by inspectors from CBN and external auditors.en_US
dc.identifier.citationWatts, R.L. and Zimmerman, J.L. (1986). “Positive Accounting Theory, New Jersey: Prentice Hall. WDR-Word Development Report, the World Bank, University Press Wirnkar, A.D (2010). The Dichotomy and Distant gap between profitability and availability of cash in the Nigrian Banking Industry; the global financial meltdown challenge. Proceedings of 2010 Conference on managing the challenges of global financial crisis in developing economies. Vol.l 76-86 NSUK, Nigeria. Zambon. S. (1999). “Italian GAAP Vs IAS: On Verge of Change" Accountancy International June 1999.en_US
dc.identifier.urihttps://keffi.nsuk.edu.ng/handle/20.500.14448/674
dc.language.isoenen_US
dc.publisherDepartment of Accounting, Nasarawa State University, Keffi.en_US
dc.subjectCreative Accounting, Discretionary, provisions, Accounting Standardsen_US
dc.titleTHE EFFECT OF CREATIVE ACCOUNTING PRACTICES ON REPORTED PROFIT AND LIQUIDITY OF QUOTED COMMERCIAL BANKS IN NIGERIAen_US
dc.typeArticleen_US

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